HSBC has revised its euro forecast higher, now projecting the single currency to reach $1.20 against the U.S. dollar by the end of 2025.
- The upgrade reflects what the bank sees as a growing global shift away from reliance on the greenback — a structural de-dollarization theme it has begun to factor more explicitly into its outlook. The bank expects broad-based dollar weakness to emerge over the coming months, driven by a combination of narrowing rate differentials, softer U.S. growth relative to the rest of the world, and increasing diversification by global reserve managers and trade partners alike.
